Cash Cycle, Statement of Cash Flow, Proposal Analysis and Special Order Quote - Desklib

ACCOUNTING FOR MANAGERS (ACC00724)
Student Name
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Question 1
Cash Cycle (Aristocrat Ltd.)
Statement of Cash Flow (Aristocrat Ltd.)
A significant jump to the extent of $ 119 million has been noticed in the operating cash flows in
FY2017 on a y-o-y basis. The prime contributor of this is the continuous focus of the company to
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grow business through the inorganic route which is leading to significant increase in customer
receipts without proportional increase in outflows associated with employees and suppliers. TO
an extent, this growth of the company is also captured in the high income tax paid in FY2017.
On account of increased spending on intangible asset acquisition, the outflow on account of
investment activities has seen a rise in FY2017 in comparison with FY2016. Also, in both
FY2016 and FY2017, there is a net outflow on account of financing activities as the company is
using the cash generated for paying debts. Besides, the jump in dividends paid in FY2017 is
quite spectacular (Aristocrat, 2017).
Question 2
Proposal given by Aaron Jacobsen:
Proposal includes quality betterment that requires additional variable cost of $28 per mobile
and expense of advertisement of $30,000. The estimated growth in sales volume due to the
proposal acceptance would be 30%.
Comment
1) Quantitative analysis for potential profit estimation
2) Sensitivity analysis for estimated sales of phones
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